The Fed just cut interest rates by 25 bps, and the historical pattern is back in focus.

When the S&P 500 is ±1% from its all-time high, data shows that this index tends to rise in the year following a rate cut.

But don't rush into euphoria.

In the first 3 months, its performance is usually still flat / stagnant before it starts to strengthen more steadily.

This means that it is not a signal for the short term, but rather a picture of bullish sentiment for the year ahead if the historical pattern repeats itself.

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